Food supplements are products meant to supplement your diet and provide additional nutrients that may be lacking. Such as vitamins, minerals, amino acids, herbs, or other botanicals. They come in various forms, including tablets, capsules, powders, liquids, and gummies. And can be purchased over the counter or prescribed by a healthcare provider.
If you want to learn more, please visit our website Vietnam supplements.
Vietnam’s economy has experienced significant growth in recent years, leading to higher incomes for the middle class. The increased demand for healthy products, particularly food supplements to support workout routines, yoga practices, and other activities, is massive.
Hence, Vietnam presents a rapidly expanding market for food supplement businesses. For those looking to enter into this market. It is crucial to understand the regulations and processes for importing and distributing products in Vietnam. This blog provides an extensive guide that will aid in successfully opening your business in Vietnam.
To set up a business for importing and distributing food supplements in Vietnam. There are 3 main steps:
Step 1: Open a trading company
Step 2: Import Food Supplements into Vietnam
Step 3: Distribute imported products to the market
You will need to register a business entity with trading functions that will allow you to conduct import and wholesale operations. However, keep in mind that wholesale companies will only sell products to other businesses (B2B). In order to sell your products directly to end users (customers), you’ll need to obtain a Retail License. We’ll discuss this requirement in more detail at a later time.
To register a company, you will need to obtain the Business Registration Certificate (BRC) and the Investment Registration Certificate (IRC). They are issued by the Department of Planning and Investment (DPI). The process typically takes around 4-6 weeks or 30-45 days to complete.
Some of the standard requirements for registering a company of this type include having a business address. Which can be either a virtual or physical address during the setup phase.
It is crucial to have a legal representative who holds legal representative status for your company, following local regulations. This representative can either be a Vietnamese citizen or a foreigner, including yourself. However, they must have a permanent address in order to be accepted as a resident.
If you don’t have a suitable candidate for this position, you may want to consider utilizing a nominee resident director.
You will also need to determine the capital investment for your business. You need to inject into the company once it is fully incorporated. While there is no minimum requirement for capital by law, a reasonable amount is recommended.
Learn more details about opening a Trading company in Vietnam – with 100% foreign ownership
After registering your business you can start to import food supplements into Vietnam. This procedure would follow the following steps:
As a company or investor looking to import food supplements, you need to define the exact HS code for the products. This code not only assists in defining the applicable taxes but also enables the accurate filling of the Customs Clearance.
Additionally, food supplement products in Vietnam’s List of Import and Export Goods are grouped under the HS code 210690. Therefore, identifying the correct HS code for food supplements is essential for ensuring compliance with import regulations and avoiding any unnecessary issues.
After successfully registering your business and determining the HS Code. The next crucial step is to obtain a Certificate of Food Safety from the Ministry of Health in Vietnam. This certificate is of utmost importance as it identifies the specific products you intend to import, with each product requiring its own certificate.
For example, if you plan to import ten different food supplement products into Vietnam, you must apply for ten individual certificates. The previous regulation required the renewal of the certificate every three years. However, this regulation has been revised, and the certificates are now valid indefinitely.
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To acquire a Certificate of Food Safety, you need to engage authorized agencies such as the Center for Standards, Metrology and Quality 1, Quality Assurance and Testing Center 3 (QUATEST 3), or National Institute for Food Control- NIFC to carry out food safety and hygiene inspections, and register accordingly. Afterward, you can utilize the inspection results in the dossier to file for the certificates.
In practice, the process may take a few months and discrepancies or issues with the submitted documentation can lengthen the processing time. Hence, it is vital to ensure that all necessary documents are complete and accurate and submitted to the relevant authorities promptly. This is especially critical for companies and investors who want to accelerate the certification process and expedite their products to the market.
After obtaining the Certificate of Food Safety, the next step is to begin the importation process. To start, you should submit an application for importing and reserving goods. Besides the standard documents for Custom Clearance such as the Invoice, Packing List, COO, Airways bill, Bill of Lading, etc, the Customs Office will ask for the Certificate of Food Safety as we obtained in the previous step..
With all sufficient documents provided, the customs clearance will be processed within two business days. For some special occasions, sometimes it happens randomly, the shipment will go into “Red Line” which means it will be opened and checked directly by Customs. If this happens, it will delay the clearance process for a few days.
As previously mentioned, a trading company has a wholesale function by default. Allowing it to engage in import/export and wholesale operations (B2B model) immediately upon establishment.
However, if the company also desires to sell food supplement products directly to consumers, it must obtain a Retail License from the Department of Industry and Trade. To do so, the company must submit a business plan outlining its operations and plans, as well as a financial strategy detailing how capital will be utilized and liquidity statements.
Once the business is established, the application for the Retail License can be submitted, along with an audited financial statement and a no-pending-tax-obligation confirmation from the Tax Department (if the company is 1 year old in Vietnam).
While the processing time for the dossier is theoretically 10 business days. It may take longer due to Government officers requiring additional clarification and documents, which can extend the process by 1-3 months. Investors should keep this in mind while planning their timelines.
Establishing a trading company in Vietnam is a relatively simple process. There are no complicated requirements or conditions to meet, and sub-licenses are not typically necessary, except for retail companies, which must obtain a Retail License.
That being said, for companies that plan to import and distribute food supplements, the greatest challenge lies in collecting all the necessary documents. Due to Vietnam’s strict regulations regarding food supplements, the process of obtaining the necessary permits and approvals can be quite complex and time-consuming. However, with the right guidance and support, navigating these regulations is manageable.
VNBG takes pride in its extensive experience in incorporating companies across a wide range of industries. We have helped establish numerous trading companies and facilitated their import processes, covering everything from obtaining import permits and filing customs clearance dossiers to acquiring Retail Licenses. With our in-depth knowledge of the Vietnamese regulatory landscape, we are confident in our ability to provide you with the most effective and cost-efficient solutions for importing and distributing food supplements in Vietnam. By leveraging our expertise, you can be assured that your business will receive the support it needs to succeed in the Vietnamese market.
You may be also interested in the following:
FORM A JOINT VENTURE – A WAY TO OPEN A LOGISTICS BUSINESS IN VIETNAM
IMPORT AND DISTRIBUTION (WHOLESALE/RETAIL) OF COSMETICS IN VIETNAM
10 STEPS TO GET YOUR COMPANY FULLY OPENED AND READY TO RUN IN VIETNAM
SET UP A BUSINESS AT THE LOWEST POSSIBLE COST IN VIETNAM
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